Facility_Location_Problems

Facility_Location_Problems - 2. A firm needs to choose a...

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DS 412 Facility Location Problems Prof Uday 1. A firm needs to choose a location to build a new facility. There are 3 potential locations: X, Y, and Z. Expected operating costs are given below. Location Fixed Cost/year Variable Cost/unit X $500,000 $27 Y $540,000 $25 Z $450,000 $31 Assume that the Selling Price/unit is the same at all locations. Find the range of volumes for which each location is best.
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Unformatted text preview: 2. A firm needs to choose a location to build a new facility. There are 2 potential locations: X and Y. Expected selling prices and operating costs are given below. Location Selling Price/unit Fixed Cost/year Variable Cost/unit X $52 $350,000 $32 Y $48 $300,000 $30 Find the range of volumes for which you would operate a facility at each location....
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This note was uploaded on 11/04/2011 for the course DS 412 taught by Professor Eng during the Fall '07 term at S.F. State.

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